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Post by liane on Apr 26, 2021 5:32:21 GMT -5
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Post by akemp3000 on Apr 26, 2021 5:51:00 GMT -5
This $10M to revise debt with Qrum Pharma seems to be the first use of the funds recently raised. IMO, there's likely something bigger planned in the near term. Am also wondering if there's been any progress with the sale and lease back of the plant.
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Post by neil36 on Apr 26, 2021 5:56:35 GMT -5
Prepayment of the Mann Group Non-Convertible Note and Amendment of the Mann Group Convertible Note
On April 22, 2021, the Company repaid the entire principal amount of $35,050,750 outstanding under the Promissory Note issued by MannKind to Mann Group, LLC (the “Mann Group”) dated August 6, 2019 (the “Mann Group Non-Convertible Note”), together with all accrued and unpaid interest thereon. In connection with the repayment of the Mann Group Non-Convertible Note, MannKind also paid all of the accrued and unpaid interest due on the Convertible Promissory Note issued by MannKind to the Mann Group, dated August 6, 2019 (the “Mann Group Convertible Note”).
MannKind also entered into an Amendment No. 1 to Convertible Promissory Note (the “Mann Group Note Amendment”) with the Mann Group, pursuant to which the parties amended the Mann Group Convertible Note to (i) reduce the interest rate from 7.0% to 2.5% effective on April 22, 2021, and (ii) extend the maturity date from November 3, 2024 to December 31, 2025.
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Post by neil36 on Apr 26, 2021 6:10:39 GMT -5
Amendment to MidCap Credit Facility
On April 22, 2021, MannKind Corporation (“MannKind”) and MannKind’s wholly owned subsidiaries, MannKind LLC (“MannKind LLC”), and QrumPharma, Inc. (“Qrum,” and collectively with MannKind and MannKind LLC, the “Company”), entered into an Amendment No. 7 to Credit and Security Agreement (the “MidCap Amendment”) with MidCap Financial Trust, as agent, and the lenders party thereto from time to time, pursuant to which the parties amended the Credit and Security Agreement, dated August 6, 2019 (the “MidCap Credit Facility”) to (i) increase the amount available under the third advance from $25.0 million to $60.0 million and extend the date through which the third advance is available to June 30, 2022, (ii) amend the conditions to the third advance of $60.0 million being available to draw, including certain milestone conditions associated with Tyvaso DPI™, (iii) remove MannKind’s obligation to issue a warrant to purchase shares of MannKind’s common stock upon drawing down the third advance, (iv) provide for an exit fee of $1.0 million in connection with a $10.0 million partial prepayment of the MidCap Credit Facility, and waive the unaccrued portion of the original exit fee and prepayment penalties that would otherwise have been due with the partial prepayment, (v) extend the interest-only period until September 1, 2023, at which time principal on each term loan advance is payable in 24 equal monthly installments, and extend the maturity date until August 1, 2025, (vi) amend the financial covenant relating to trailing 12 month minimum Afrezza Net Revenue (as defined in the MidCap Credit Facility) to eliminate the requirement to test compliance so long as the Company has $90.0 million or more of unrestricted cash, (vii) decrease the minimum cash covenant from $30.0 million to $10.0 million at all times and eliminate the minimum cash covenant in the event that Tyvaso DPI™ is approved by the FDA, (viii) decrease the interest rate on any amounts outstanding, now or in the future, under the MidCap Credit Facility, (ix) permit the Company to make certain acquisitions subject to requirements as set forth in the MidCap Amendment, and (x) permit the Company to make investments of up to an additional $9.0 million so long as the Company has $90.0 million or more of unrestricted cash following such investment. Concurrent with entering into the MidCap Amendment, the Company made a $10.0 million principal prepayment against outstanding term loans under the MidCap Credit Facility and paid a related $1.0 million exit fee as described above.
The foregoing description of the MidCap Amendment does not purport to be complete and is qualified in its entirety by reference to the MidCap Amendment, a copy of which is attached as Exhibit 99.1 to this report.
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Post by letitride on Apr 26, 2021 6:10:47 GMT -5
Been a long long ride.
Its Happening!
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Post by BD on Apr 26, 2021 6:32:00 GMT -5
I actually have TWO stocks with a volume of 6 shares traded right now, one of which is MNKD...
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Post by Clement on Apr 26, 2021 6:32:47 GMT -5
Amendment to MidCap Credit Facility On April 22, 2021, MannKind Corporation (“MannKind”) and MannKind’s wholly owned subsidiaries, MannKind LLC (“MannKind LLC”), and QrumPharma, Inc. (“Qrum,” and collectively with MannKind and MannKind LLC, the “Company”), entered into an Amendment No. 7 to Credit and Security Agreement (the “MidCap Amendment”) with MidCap Financial Trust, as agent, and the lenders party thereto from time to time, pursuant to which the parties amended the Credit and Security Agreement, dated August 6, 2019 (the “MidCap Credit Facility”) to (i) increase the amount available under the third advance from $25.0 million to $60.0 million and extend the date through which the third advance is available to June 30, 2022, (ii) amend the conditions to the third advance of $60.0 million being available to draw, including certain milestone conditions associated with Tyvaso DPI™, (iii) remove MannKind’s obligation to issue a warrant to purchase shares of MannKind’s common stock upon drawing down the third advance, (iv) provide for an exit fee of $1.0 million in connection with a $10.0 million partial prepayment of the MidCap Credit Facility, and waive the unaccrued portion of the original exit fee and prepayment penalties that would otherwise have been due with the partial prepayment, (v) extend the interest-only period until September 1, 2023, at which time principal on each term loan advance is payable in 24 equal monthly installments, and extend the maturity date until August 1, 2025, (vi) amend the financial covenant relating to trailing 12 month minimum Afrezza Net Revenue (as defined in the MidCap Credit Facility) to eliminate the requirement to test compliance so long as the Company has $90.0 million or more of unrestricted cash, (vii) decrease the minimum cash covenant from $30.0 million to $10.0 million at all times and eliminate the minimum cash covenant in the event that Tyvaso DPI™ is approved by the FDA, (viii) decrease the interest rate on any amounts outstanding, now or in the future, under the MidCap Credit Facility, (ix) permit the Company to make certain acquisitions subject to requirements as set forth in the MidCap Amendment, and (x) permit the Company to make investments of up to an additional $9.0 million so long as the Company has $90.0 million or more of unrestricted cash following such investment. Concurrent with entering into the MidCap Amendment, the Company made a $10.0 million principal prepayment against outstanding term loans under the MidCap Credit Facility and paid a related $1.0 million exit fee as described above. The foregoing description of the MidCap Amendment does not purport to be complete and is qualified in its entirety by reference to the MidCap Amendment, a copy of which is attached as Exhibit 99.1 to this report. They removed the handcuffs and shackles and let us out of prison. (But we're still on parole.) |
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Post by mnkdfann on Apr 26, 2021 8:48:23 GMT -5
This $10M to revise debt with Qrum Pharma seems to be the first use of the funds recently raised. IMO, there's likely something bigger planned in the near term. Am also wondering if there's been any progress with the sale and lease back of the plant.Mannkind's PR today regarding the 8-K noted ... www.globenewswire.com/news-release/2021/04/26/2216889/0/en/MannKind-Reduces-Legacy-Debt-by-Approximately-49-5-Million-and-Restructures-Remaining-Obligations-including-Extended-Maturity-Lower-Interest-Rates-and-Increased-Third-Tranche.htmlMannKind also announced that it is evaluating the considerations underlying a potential sale-leaseback of its manufacturing facility in Connecticut, which is being negotiated under a previously announced letter of intent. The Company will update investors regarding its plans for the facility at a future date.
MannKind’s Chief Financial Officer, Steven B. Binder commented, “Starting with the convertible debt offering in March and ending with these debt reductions and restructurings, we have positioned the Company with ample cash and a manageable debt load to fund our near-term priorities, enabling us to focus on the development of our product pipeline, investing behind growing Afrezza and supporting our collaborations.”
Further details about both transactions will be provided in a Current Report on Form 8-K filed with the Security and Exchange Commission.
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Post by boca1girl on Apr 26, 2021 8:52:08 GMT -5
I was wondering if the sale/lease back was going forward because of the lack of news. Do they really need another $100M?
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Post by celo on Apr 26, 2021 8:56:09 GMT -5
Future debt is now on mannkind's terms and not with a slew of caveats. Good to see.
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Post by mango on Apr 26, 2021 9:55:15 GMT -5
Today’s Highlights:
✅ Paid Off Mann Group Non-Convertible Note of $35.1 Million in Principal plus $4.4 Million in Accrued Interest
✅ Prepaid $10.0 Million Owed Under MidCap Credit Facility and Increased Borrowings Available Under Tranche 3 to $60.0 Million
✅ Reduced Annual Interest Expense on Remaining Indebtedness by Approximately $5.0 Million
✅ Potential sale-leaseback of manufacturing facility to be further evaluated
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Certainly is nice to see such positive financial news hit the waves so soon after our Tyvaso DPI FDA NDA submission.
Lots more to come—stay tuned 🤙
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Post by longliner on Apr 26, 2021 9:59:54 GMT -5
Today’s Highlights: ✅ Paid Off Mann Group Non-Convertible Note of $35.1 Million in Principal plus $4.4 Million in Accrued Interest ✅ Prepaid $10.0 Million Owed Under MidCap Credit Facility and Increased Borrowings Available Under Tranche 3 to $60.0 Million ✅ Reduced Annual Interest Expense on Remaining Indebtedness by Approximately $5.0 Million ✅ Potential sale-leaseback of manufacturing facility to be further evaluated ————————————————— Certainly is nice to see such positive financial news hit the waves so soon after our Tyvaso DPI FDA NDA submission. Lots more to come—stay tuned 🤙 5 million per year closer to cash flow positive. |
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Post by straightly on Apr 26, 2021 11:40:55 GMT -5
Today’s Highlights: ✅ Paid Off Mann Group Non-Convertible Note of $35.1 Million in Principal plus $4.4 Million in Accrued Interest ✅ Prepaid $10.0 Million Owed Under MidCap Credit Facility and Increased Borrowings Available Under Tranche 3 to $60.0 Million ✅ Reduced Annual Interest Expense on Remaining Indebtedness by Approximately $5.0 Million ✅ Potential sale-leaseback of manufacturing facility to be further evaluated ————————————————— Certainly is nice to see such positive financial news hit the waves so soon after our Tyvaso DPI FDA NDA submission. Lots more to come—stay tuned 🤙 Nothing to see here: more money flows to where it is plentiful. |
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Post by pat on Apr 26, 2021 11:41:23 GMT -5
Taking advantage of a capital raise and pending new revenue stream to tidy up the BS....Just more evidence of aimless management I guess.
😉
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Post by sportsrancho on Apr 26, 2021 12:37:15 GMT -5
Good stuff.
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